What is the meaning of a bankruptcy discharge?

A bankruptcy discharge is a court order that releases a debtor from the legal responsibility to pay certain debts. This means the debtor is no longer liable for those debts and the creditors can no longer take any action or demand payment. In Wisconsin, the bankruptcy court will issue a discharge after a debtor successfully completes their bankruptcy case, whether it’s a Chapter 7 or 13. A discharge is typically granted three to four months after filing a petition, though there are a few reasons it could be delayed. In the context of bankruptcy in Wisconsin, a discharge releases a debtor from personal liability for certain debts and prohibits creditors from taking any collection action against the debtor or the debtor’s property. This includes taking legal action to collect on debts or threatening to do so. It also forbids creditors from contacting the debtor about the debt in any way. The bankruptcy discharge is different from a dismissal or a denial. In the case of a dismissal, the bankruptcy court has terminated the bankruptcy case without granting a discharge. A denial means the court has denied the debtor’s request for a discharge. In either case, the debtor will remain liable for all debts and the creditors may still take action to collect on those debts.

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What is the meaning of a bankruptcy discharge?

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